Treasury Prices Close Higher
In Reaction to Fed's Rate Cut

NEW YORK -- Treasurys prices ended sharply higher across the board in a continued response to the Federal Reserve's rate cut, as the benchmark 10-year note yield again fell below 5%.

Bonds also gained because of early weakness in stocks as warnings by Dow Jones Industrial Average components American Express and Merck "raised concerns about the earnings outlook," said David Coard, head of fixed-income sales and trading at Williams Capital Group LP in New York.